Govt working on mechanism on rupee devaluation: PM Imran

Prime Minister Imran Khan on Monday said the State Bank of Pakistan (SBP) did not inform the government before devaluing the rupee last week and they are now working on a mechanism to ensure this does not happen in the future.

In a meeting with TV anchors and reporters in the federal capital, the premier spoke about the country’s economic and security situation and revealed that he received a letter from US President Donald Trump earlier today. In the letter, Trump has asked Pakistan to play its role in Afghan peace talks which are aimed at catalysing an end to the 17-year invasion of Afghanistan by US troops, the premier told the journalists.

PM Imran Khan also spoke about the current hike in the value of dollar and revealed that the SBP did not ask the government before devaluing the rupee. “I found out about the dollar hike through television.”

“Earlier as well when the price of dollar touched a record-high against the rupee, I was not informed beforehand. The central bank had devalued the currency and it’s an institution which overlooks these matters,” he added.

“We are now working on a mechanism under which the SBP cannot devalue the currency without taking the government into confidence first,” the premier further said.

There was extreme volatility in the currency market on Friday, when the rupee plunged more than 6 percent at one point before paring a chunk of the losses. The US dollar hit an all-time high of Rs142 in the interbank market.

The rupee was trading 1 percent weaker on Monday, at about Rs137.5 per dollar.